Downturn takes toll on engineering company

Nelson company Nalder and Biddle is understood to be making some of its engineering staff redundant, amid a downturn in the fishing industry.

It comes as the High Court ordered the company to pay more than US$200,000 ($283,000) damages to a United States client for a botched boat repair job.

Nalder and Biddle is believed to have given eight engineers, including one apprentice, in its Nelson engineering workshop notice of redundancy this week

Sources said the redundancies were sparked by economic conditions and a downturn in the fishing industry, with fishing boat owners not spending as much money on their boats.

Chief executive Allan Price was unavailable to comment today.

Yesterday the High Court ordered Nalder and Biddle to pay damages of more than US$200,000 to San Diego-based C and F Fishing Ltd, over work carried out on its 77m purse seiner vessel Jeanette.

The two companies became embroiled in a legal wrangle after the boat arrived in Nelson in December 2002 for a substantial refit.

In his judgment, Justice Alan MacKenzie said the refit did not go smoothly, and relationships between the parties deteriorated to a point where the vessel was arrested by Nalder and Biddle in April 2003, and legal action started.

Nalder and Biddle sought to recover what it claimed was money due to it for carrying out the refit, but C and F Fishing counterclaimed for damages for defective workmanship, delays and wrongful arrest of the vessel.

Justice MacKenzie ordered that Nalder and Biddle pay for damage to the boat's splitter gearbox, and defective painting totalling more than $200,000.

He also found Nalder and Biddle liable for the delay in completing the project, but not liable for damages for wrongful arrest of the boat.

Also, the judge found that the balance of the contract price payable by C and F Fishing to Nalder and Biddle should allow for an additional $27,412 for extra work relating to a fishwell on the boat.

Justice MacKenzie directed that a further hearing be held to determine the amount of damages for periods of delay, and to address questions of interest and costs.

- nzpa